The Indian Contract Act, 1872 defines a void agreement as an agreement which is not enforceable by law. This means that a void agreement is one which is not legally binding, and any actions taken under such an agreement will not be recognized by a court of law. In this article, we will discuss the concept of a void agreement under the Indian Contract Act, 1872.

What is a Void Agreement?

A void agreement is one that has no legal effect. According to Section 2(g) of the Indian Contract Act, 1872, an agreement that is not enforceable by law is void. A void agreement is different from a voidable agreement. A voidable agreement is one that is valid at the time of creation but can be canceled at the option of one or more parties due to certain legal grounds.

Grounds for a Void Agreement

Section 10 of the Indian Contract Act, 1872, lays down the grounds on which an agreement can be declared void. These include:

1. Agreement made by incompetent parties: An agreement made by parties who are not competent to contract, such as minors, persons of unsound mind, or those who are disqualified by law, is void.

2. Agreement made under coercion or undue influence: An agreement made under coercion or undue influence is void. Coercion means the use of force to make someone comply with an agreement. Undue influence means taking unfair advantage of another person`s position of power to obtain their consent.

3. Agreement made with unlawful consideration or object: An agreement made with unlawful consideration or object is void. For example, an agreement to commit a crime, or an agreement to defraud someone, is void.

4. Agreement made with uncertainty: An agreement that is uncertain is void. For instance, an agreement to sell a good, the quality or quantity of which is not specified, is void.

5. Agreement contingent on an impossible event: An agreement contingent on an impossible event is void. For example, an agreement to pay someone a sum of money if they can fly like a bird is void.

6. Agreement in restraint of marriage: An agreement that prevents a person from getting married is void.

7. Agreement in restraint of trade: An agreement that restricts a person from carrying on any lawful trade, business, or profession is void.

Effects of a Void Agreement

A void agreement has no legal effect, and any actions taken under such an agreement are not recognized by the court. The parties to a void agreement cannot enforce any of the terms of the agreement. In other words, they cannot sue each other for breach of contract or seek damages. Instead, they must resort to other legal remedies available to them.

Conclusion

In conclusion, a void agreement is an agreement that has no legal effect. The Indian Contract Act, 1872 lays down the grounds on which an agreement can be declared void. Parties to a void agreement cannot enforce any of its terms, and any actions taken under such an agreement are not binding in a court of law. As such, it is essential to understand the concept of a void agreement and avoid entering into such agreements.